In getting the gross profit, you need to add all the assets and less the expenses. See below:
Asset - Expenses = Profit
Below are the assets:
$ 23,000 cash on hand
$ 34,000 cash on bank
Therefore the total asset is $ 57,500
While the expense is $41,500
Solution: $57,500 - 41, 500 = $16,000
I hope it helps
Answer:
D. More Units may be sold - but total revenue will be less than it would be at the higher price
Explanation:
Marginal Revenue (MR) represents the additional revenue that can be obtained if sales of a product are increased by one unit.
MR= is change in Total Revenue/Change in Total Output Quantity
In this situation as envisaged by the Marketing Manager, a price cut will lead to an increase in revenue based on more (marginal) units of the product sold at a lower price. The challenge, however, is that this increase in income will not be enough to offset the decrease in revenue that will result as a result of the price cut.
In other words, the organisation is better off selling fewer products or units at its current price than sell more (marginal units) at a reduced price.
Answer:
1/4
Explanation:
MPC = dC/dY
dC is the change in consumption
dY is the change in demand for goods and services.
MPC = 15/60 = 1/4
If allowance is made for crowding out, the new estimate will be larger.
Answer:
The straight-line depreciation method and the double-declining-balance depreciation method:
Produce the same total depreciation over an asset's useful life.
Explanation:
The straight-line and the double-declining-balance depreciation methods are two of the four depreciation methods allowed by US generally accepted accounting principles (GAAP). The other two methods are sum of the years' digit and units of production. The straight-line method is calculated by subtracting the salvage value from the asset's cost and either dividing the depreciable amount by the number of years or applying a fixed rate on the depreciable amount. For the double-declining-balance method, 100% is divided by the number of years of the asset's useful life and then multiplying by 2 to obtain the depreciation rate. Depreciation expense is then calculated on the declining balance until the salvage value is left. This is why they produce the same depreciation over the asset's useful life.
